What is the property allowance for landlords?
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In short: A £1,000 tax-free allowance on property income each year. If your gross rental income is below £1,000 you may not need to report it. You cannot claim the allowance and deduct expenses on the same property.
Last reviewed:
Reviewed by Kaiser Khan
Useful for occasional letting or small income streams. Once income exceeds £1,000, full expense rules usually apply instead.
The allowance is per person, not per property. Joint owners each have their own £1,000.
Rent a Room relief is separate — up to £7,500 for lodgers in your own home.
Primary source: gov.uk/renting-out-a-property/paying-tax
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